Today’s consumers are hunting for value and if they find it, they’ll pay for it. In my Coaching Tip this week I’ll tell you why it may be time for you to have a minimum fee. There’s a reason consumers will choose you and your brand, and you have to get clear about what it is that you bring to the table.
Over the last few weeks even fee discounters have had to increase their fees. They worked out that they were only remunerating people around listing property because as the market changed no one was selling. Now agents selling one or two bedroom units are getting more expensive than some of our clients in highly competitive markets.
If you set a minimum fee you really begin to understand what’s happening in your agency, and fee discounters have realised that being a discounter doesn’t ensure that they’ll make a profit. It’s not about who can be the cheapest. It’s about who can be most profitable working with a sustainable model, even in changing markets.
You need to know what it actually costs to sell a property. From infrastructure costs to payroll to quality training, it’s all necessary just to keep the business running. With today’s demanding price-savvy customers you have to be able to reinvest and reinvent to stay relevant.
So maybe it’s time to have a minimum fee as well as an average fee. Work out the percentage that you need to be able to sell a property and base your minimum on that. Separate and differentiate your brand in a meaningful way – not as the cheapest, but as the agent who knows how to navigate the circumstances and market conditions of the day.
I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.